STR in Orlando. Is it or not a good deal?

Question

I see many investors buying STR properties in Orlando. Usually, when a lot of investors are buying at the same city, it means, inflate the house prices... is this a bubble with Orlando? any insites? If it isn't a bubble, can anyone suggest best STR communities to buy?

thanks

Tyler Gibson · Answer

@Eddy Wehbe Make sure the home is not ins the City of Orlando. They recently made some rules that do not allow you to do a STR for an entire property. You have to live in the property and even then you can not rent more than half of the rooms. So in a 5 bedroom house, you could only rent 2 rooms and you would have to live there to boot.

Anthony Joseph Candelario · Answer

Also, like @Tyler Gibson said, if you are planning or thinking about buying a property to use as a STR, you need to check the ordinance map and see if it is even allowed at all or not. I've inserted a link to the map to check if a property is allowed to be used as an STR, but this is only to check if you can do it at all. Even if you are in an area that allows it, you have to follow the guidelines as Tyler stated.

orlando str ordinance map

Eddy Wehbe · Answer

@Tyler Gibson thanks for the information .

@Anthony Candelario any specific communities should I look at? for example Encore Reunion ..... or others? suggestions?

Eddy Wehbe · Answer

@Anthony Candelario thanks for the advice

Marlon Persaud · Answer

@Eddy Wehbe Orlando gets the most tourist traffic in the entire country. As long as the economy keeps doing well and people continue to take vacations I don't think you will go wrong with Orlando. Areas close to Disney that are zoned for STR typically give you the best returns and occupancy rates. So Davenport, Celebration, Kissimmee, Champions Gate are all great areas close to Disney with Neighborhoods zoned for STR.

Anthony Joseph Candelario · Answer

@Eddy Wehbe I can't think of any specific communities off of the top of my head, but in general I would just say as close north or south that you can get to Orlando is probably the safest or "best" place if you can find deals in there. I might be swerving out of my lane a bit right now because I don't have the experience as an investor like a lot of the others on here do, but just as an agent thats what I would say. Or if you work with a property manager, you could ask him/her what areas on the outskirts of orlando have the most rental activity and go from there.

Anthony Joseph Candelario · Answer

I am an agent, newly starting into real estate investing. But, just in my personal opinion, I don't see a bubble. Home prices are rising in Orlando more than surrounding areas but it just looks like a current seller's market to me. Home prices may trend up and down in the next 5-10 years with ups and downs in the amount of buyers vs sellers, but the main reason for the previous bubble was a catastrophic lack of lending regulations. Now there is a very strong foundation for lending and lending regulations such that I don't see something as significant as a 'bubble' happening. Additionally, like Marlon said, Orlando is heavily a tourist based STR market. So it would seem more beneficial to buy STR properties in the area between Disney to Downtown Orlando. But for areas like Sanford, Apopka, Deltona, Deland, Lakeland, etc, which are outside of the general tourist area, they are not as affected buy all of the buying of STR properties and are just slower adjusting markets in general I think.

Eddy Wehbe · Answer

@Marlon Persaud thanks for your inputs. Any specific communities would you suggest? what is the average cash on cash %?

STR in Orlando. Is it or not a good deal?

STR in Orlando. Is it or not a good deal?

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